Ballmer Says Netbooks Are ‘Revolutionary’

Pared-down, miniature netbooks are not just trendy but also revolutionary, says Microsoft CEO Steve Ballmer.

The chief executive this week gushed over netbooks on stage at the All Things D conference, where he debated the impact of netbooks with Wall Street Journal technology columnist Walt Mossberg.

“It’s a more revolutionary thing than a new computing device,” he responded to Mossberg, who said netbooks are nothing new. “It leverages the whole computing world and the Internet, and you can put it in a small little notebook.”

Despite their low-powered chips, small keyboards and puny screens, netbooks were hot gadgets in 2008, selling 10 million units overall. ABI Research forecasts that manufacturers will ship 200 million ultra-mobile devices, including netbooks by 2013 — which is about the same anticipated size as the entire laptop market worldwide. ThinkPanmure analyst Vijay Rakesh says the relatively low price point of netbooks — $300 to $500 on average — is their primary driving factor in a troubled economy.

It remains up for debate whether netbooks will survive after the economy recovers. Ballmer invests faith in netbooks, highlighting their ability to deliver a full internet experience, including Flash. (We presume he’s knocking Apple’s iPhone, which doesn’t support Flash.)

Most interesting is how chief executives can appear to be polar opposites. In October, Apple CEO Steve Jobs called netbooks pieces of junk, and the company has not changed its stance. Of course, we expect Apple to deliver a gadget in response to the netbook category that the company won’t call a netbook. We’re placing our bets on Apple’s fabled touchscreen tablet.

What are your thoughts, readers? Are netbooks junk? Revolutionary? A hot fad that will continue for years? Add your comments below.

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